Afghanistan with Pakistan & Iran
GM545: Business Economics
The Islamic Republic of Afghanistan is located in Southwest Asia bordered by Pakistan, Iran, Turkemistan, Uzbekistan, Tajikistan and China. They are an active member of the international community and have diplomatic relations with countries around the world. In December 2002, they signed a “Good Neighbor Declaration” with its bordering neighbors which pledged respect to Afghanistan’s independence and territorial integrity. Afghanistan is a landlocked country which is slightly smaller than Texas and about one third larger than Iraq. The Hindu Kush Mountains dominate the landscape and elevation ranges from 850 to more than 24,000 feet. The country is mostly rural and underdeveloped. It has a dry climate with cold winters and hot summers. “When I was there, from April to October in 2006, I saw about only 10 minutes of rain the entire time,” said Chris Miller, retired Air Force Master Sergeant. “Being in the capital city of Kabul, where the elevation is approximately 5,900 feet, it didn’t get too hot in the summer and was rather pleasant in the spring when I first arrived and in the fall when I was leaving.” The political system of Afghanistan has seen a sea of change over the past few decades. The current political scenario in Afghanistan has long been predominated by efforts of the United States and United Kingdom as it tries to establish a stabilized government. The present day constitution of Afghanistan was officially adopted at Loya Jirga on January 4, 2004. It emerged out of the Afghan Constitution Commission initiated by the “Bonn Agreement” which came out of a United Nations-sponsored conference which created an interim government and establishing a process to move toward a permanent government. Afghanistan is making strides toward political stability. President Hamid Karzai became the first ever democratically elected head of state in Afghanistan in October 2004. In December 2005, 351 men and women representing Afghanistan’s provinces, tribes and ethnic groups took their seats as representatives in the country’s first democratically elected legislature in more than three decades. This established the final component of the country’s first entirely democratic government. The members of the Supreme Court were appointed by the president to form the justice system. The new system provides a set of checks and balances unheard of during the Taliban era. Early economy, wars of Afghanistan
In the 1930s, Afghanistan had a modest economic development program. The government founded banks; introduced paper money; established a university; expanded primary, secondary and technical schools; and sent students abroad for continued education. Afghanistan has always had a reputation of being a hostile, war driven country. In the 1980s they were involved in a “Civil War” with the Soviet Union known as the Battle of Kabul. This destroyed a lot of the country’s limited infrastructure and disrupted the normal patterns of economic activity. Gross domestic product fell substantially because of loss of labor and capital and disruption of trade and transport. After the Soviet occupation, in the early 1990s, agriculture was revived and made a substantial increase in most regions healing the economic conditions. Since Afghanistan’s pre-war economy was mainly based on agriculture, the climate conditions was important factor to consider. A drought hit in 1999 and lasted till 2001 and the country went from being self-sufficient in agriculture to dependent on foreign aid. Crop production has been halved and livestock herds heavily depleted, more than erasing the modest gains of the early and mid-1990s. Large and increasing numbers of people have lost their means of livelihood and have become displaced, either internally or to neighboring countries. Malnutrition has significantly worsened, and starvation deaths have been reported. The...